The Babcock and Wilcox power generation group of OHIO (USA) has
signed a ninety million dollars contract with Saba Power Co. Ltd. of
Lahore to construct and commission a 125 megawatts oil-fired power plant
near Lahore. The new facility will be located near Farouqabad, sixty
kilometers Northwest of Lahore. Saba Power Company, an independent power
producer in Islamabad, will own the high-efficiency plant and supply
power to water and power development authority.

Liberty Power Limited

Liberty Power Ltd. has a financial closure of Phase I of the Liberty
Power Project, a 235 MW (ISO) natural gas-fired, combined cycle power
station situated near Mirpur Mathelo, Sindh Province. The Project is
sponsored by Infrastructure Capital Group, Tenaga Nasional Berhad of
Malaysia and Energy Power Development Corporation of United States, and
marks the first investment by an Asian utility in Pakistan. Financial
close was achieved in under 12 months from the Government of
Pakistan's (GOP) issuance of the Letter of Support for the Project
to Infrastructure Capital Group on July 17, 1995.

The plant is scheduled to be commissioned in October, 1997, 14 months
from now. Liberty's total project cost is approximately USA 260
million dollars, financed at a 70:30 debt to equity ratio. The lead
Sponsors have underwritten entirely approximately US$70 million
representing the entire base equity amount required to finance the
project.

Low BTU gas from the Habib Rahi Formation of the Qadirpur gas field
will fuel the plant under a gas supply agreement signed between the
Qadirpur joint venture and Liberty Power Limited. As a natural gas
fired, combined cycle plant Liberty will operate at a thermal efficiency
of approximately (49%), which compares favourably to the 38.5% thermal
efficiency typical of conventional oil fired steam turbines. Higher
thermal efficiency will lessen the amount of fuel required per kilowatt
of electricity generated, thereby reducing emissions and increasing cost
effectiveness.

Coal Based Power Project

A USA-UK-Pakistan joint venture will undertake in the near future the
installation of a 450 megawatt power plant using the latest fluidised
bed technology which enables environmentally safe use of coal with a
high sulphur content.

For this purpose, an open pit mine will be developed at Lakhra in
Sindh province with a capacity to produce three million tonnes of coal
per annum or more by Smith Associated Power and Mining company. The
project involving an investment around $600 million has been finalised
with a joint venture company representing companies from the USA, UK and
Pakistan.

Bechtel Power Corporation of USA are the EPC contractors for the main
plant and Crouch Mining Ltd. of UK will develop the coal mines for the
power station. The coal mine area was recently leased to the joint
venture company and the ground breaking ceremony of the project is
expected around June this year. The joint venture company has also
offered to supply coal to WAPDA for the 3x50 MW units at Lakhra.

The high sulphur content in Lakhra coal had so far hindered its
large-scale use for generation of electricity. However, with the
availability of the fluidised bed technology now, a number of power
generation projects based on Lakhra mines are in the pipeline. These
include BBI Power LP, USA and Sindh Coal Electrical Power Company Ltd.
with a capacity of 200 MW and 100 MW power stations, respectively.

These power plants envisage an investment of around $300 million. On
the whole, the indigenous coal-fired power plants at Lakhra envisage an
investment of around $900 million or around Rs.32 billion. Proposals of
numerous other power stations are also under consideration.

Tractor Assembly Plant

A tractor assembly plant is being set up in upper Sindh at Larkana as
a joint venture between Pakistan and Romania in the private sector. One
hundred tractors in completely knocked down condition are due to reach
Karachi from Romania within the next two months. The joint venture in
tractor assembly which would ultimately lead to manufacturing, had been
signed between a Pakistani firm G.M. Brothers and the Universal Tractors
of Romania. The two collaborating firms had already signed an agreement
to begin with the production of 10,000 tractors of 53 horse powers.
Universal Tractors manufacture tractors under Fiat licence.

Oil Exploration Agreement

The Government of Pakistan has granted a petroleum exploration
licence to UMC Pakistan Corporation, a subsidiary of United Meridian
Corporation of USA and government holdings over Pasni Block covering
7480 sq. km. in District Gawadar and offshore Mekran.

The petroleum concession agreement for the above mentioned Block was
signed. The company will carry out geological and geophysical studies
and drill an exploration well during initial three years term with a
financial commitment of US$4.45 million.

UMC is an independent oil and gas company incorporated in the state
of Delaware, USA. UMC's North American operations are concentrated
in Gulf of Mexico, Gulf Coast, Mid-Continent and Rockies, USA and in
Alberta and Saskatchewan, Canada. Besides the company is also producing
properties in Equatorial Guinea and Cota d, Ivore in West Africa.

The proven oil and gas reserves of the company are equivalent to
about 600 billion cubic feet. The total assets of the company are about
US$510 million and is rated among the top 20 independent companies of
USA.

Presently 20 local and foreign companies are engaged in petroleum
exploration in the country over 270,000 sq. kms. These include British
Gas, Unocal Lasmo, OMV, BHP, Union Texas, PPL besides Oil and Gas
Development Corporation. Another 4 blocks are under procession for
grant.

Pak-China Joint Venture

Isani Industries Ltd. has entered into a joint venture with
China's Yan Xing Xiamen Corporation to set up an assembly and
manufacturing plant for pick-ups and motorcycles at a cost of 9 million
dollars. Initially a motorcycle assembly and manufacturing plant will be
set up with a capacity to manufacture 30,000 motorcycles per year. The
joint venture also provides for setting up a pickups and light trucks
manufacturing plant at Port Qasim in Karachi or in Shikarpur to produce
single and double cabin pickups and highroof vehicles consuming diesel
as fuel. The production capacity of the plant will be 7000 vehicles on 8
hours working shift basis.

Enron Power Plant

The Enron Corporation has said it would be constructing a dollar 670
million residual oil power project in Pakistan in the middle of this
year.

This plant, which is to generate 754 megawatt power, is being built
in Punjab near Multan. Enron said the project is the first power plant
in Pakistan to meet the new 1995 World Bank standards for environmental
emissions. Commercial operation of the plant is planned for early 1999.
The Houston-based energy company said it signed a 30-year power purchase
agreement with the Water and Power Development Authority (WAPDA), which
will purchase power. The company said, the project is supported by the
Pakistan Government, which signed an agreement that guarantees
WAPDA's payment obligations.

FFC - Jordan

Some twenty-two foreign fund houses have made placement worth
Rs.825.772 million in the total paid-up capital of Rs.3.314 billion in
FFC - Jordan Fertilizer Company (FJFC). The company has also made offer
to general public to around Rs.390.900 million (including a premium of
Rs.5 per share) and to NIT Rs.39.150.

The establishment of FJFC envisages setting up of an integrated 1350
tonnes per day (MTPD) of Di-Ammonium Phosphate (DAP) and 1670 MTPD of
urea manufacturing facilities of Port Qasim. The total project cost is
estimated at $370 million (equivalent to Rs.11,137 million) and the
project is expected to go into production.

The project is sponsored by Fauji Fertilizer Company and their equity
participation in the company is 30 per cent with Fauji Foundation. (FF)
10 per cent, Jordan Phosphate Mines Company 10.36 per cent, Pak-Kuwait
Investment Company 6.33 per cent, foreign 24.72 per cent, local 4.72 per
cent, general public and NIT 8.58 and CDC UK 5.09 per cent.

Saba Power Project

The Export-Import Bank of the United States (Ex-Im Bank) has
authorized more than 50 million dollars to support the sale of US
equipment and service for Saba Power Project located at Farouqabad about
40 km from Lahore. Project financing will support exports by Babcock and
Wilcox Co., with production facilities in Ohio for a 125-megawatt
oil-fitted power plant in Pakistan.

Babcock and Wilcox will provide engineering procurement and
construction for the project. The Water and Power Development Authority
of Pakistan will buy the plant's entire capacity and output.
Sponsors of the project are Cogen Technology of Houston, Texas, Capco
Resources of Canada and Powerflow International of Pakistan Saba Power
Company Ltd., the project company owned jointly by the sponsors, will
build, own, and operate the oil-fired power plant in Pakistan's
Punjab Province.

The Saba Power Project is the second privately developed, owned and
operated power project in Pakistan to receive an Ex-Im Bank financing
commitment. Last November the Bank provided a financing commitment of
242.8 million dollar for 586-megawatt power plant in western Pakistan.

ICI's PTA Plant

ICI Pakistan's $450 million Pure Terephthalic Acid (PTA) plant
at Port Qasim will start commercial operation in 1997 and will be able
to cater to the needs of the country of polyester fibre thereby giving a
saving of $100 million per annum. At a briefing at Port Qasim on April
21, 1996 it was stated that after the commencement of the project in
1997, the country would save $100 million foreign exchange every year as
after three years of production, the plant would be able to export.

At present 75 per cent engineering work had been completed and all
major equipment orders had been made and it was hoped that steel work,
piping, M.E. and I would be installed. The total cost of the project was
$462 million in which #2 million would be paid on land, $162 million on
plant machinery $81 million on construction, $60 million on engineering
services, $60 million on infrastructure, $25 million on water, $15
million on power, $30 million on technology, $19 million on
pre-operating costs, $29 million on working capital and $29 million on
interest during construction.

The investment in project would be 59 per cent foreign equity
shareholding and 41 per cent local currency. The funding for the project
had $168 million equity and 171 million debit, it is expected that
investment would be returned at the rate of 6.6 per cent per annum in
fixed interest up to a grace period of June 30, 1998. The current status
was Morabah financing which would, be done by Pak Kuwait Investment Bank
by providing Rs.325 million and in the case of local currency funds
would have to be raised as capital expenditure was expected to be Rs.3
billion and working capital was Rs.1 billion in which the underwriters
were National Bank of Pakistan, Muslim Commercial Bank, Citicorp
Investment and Faysal Islamic Investment.

Fauji Kabirwala Power Project

Agreements for the financing of the project worth US$ 137.3 million,
have been signed between the sponsors, the Fauji Kabirwala Power Company
and the lenders to the project.

Fauji Kabirwala 157 MW Combined Cycle Power Plant is the 6th combined
cycle power plant being set up in the country, utilizing the state of
the art cogeneration technology which gives higher thermal efficiency
compared to the conventional thermal power stations. However, it is
first of its kind which would be burning low BTU (330/390 btu/scf) gas
fuel of Nandipur and Punjab Gas fields.

The total cost of the project estimated at US$ 172 million consists
of foreign and local currency components of US$ 152 million and US$ 20
million respectively. Fauji Foundation and KPP Investment of USA are the
sponsors of the project with 45 per cent and 42 per cent of the total
equity respectively.

The balance 13 per cent (US$5.3 million) will be contributed by ADB.
ADB is providing a direct loan of US$32 million and a complementary loan
of up to US$65 million, arranged by ABN AMRO Bank N.Y. of Netherlands.
EDC is providing an export credit facility of upto US$35 million.

With the signing of these agreements Fauji Kabirwala Power Project
has now achieved the financial close, a significant milestone,
subsequent to which the project has entered into the implementation
phase. The project is expected to be completed in early 1998.

Coastal Corporation and Habibullah Energy Tie-up

Coastal Corporation of USA in joint venture with Habibullah Energy
Limited is setting up 140 MW fired combined cycle power plant near
Quetta. Habibullah Energy Company has met all the conditions including
signing of the implementation agreement, power purchase agreement and
gas supply agreement.

Habibullah Coastal Power Company has given notice to its turnkey
contractor Fiat Avio for proceeding to construct the power plant. The
power plant will come into commercial production by end of December
1997.

At present Balochistan is suffering from power shortage of 300 MW
with lot of loadshedding and voltage fluctuation which cause severe
damage to electric bulbs, household appliances such as refrigerators,
deep freezers, airconditioners and electric motors of industrial plants
and of agricultural tubewell water pumps. This 140 MW power plant will
establish to power system at Quetta and enable Wapda to provide electric
power at steady voltage with much less loadshedding.

Southern Electric Company

Southern Electric Power Co. setting up and operating power setting up
and operating power generating project in private sector, has floated
its first public issue containing 10.50 million shares, fully
underwritten by Crescent Investment Bank and First Capital Securities
Corporation. The project of the company is a new thermal power
generating plant which is scheduled to be commercially operational by
December, 1997 having a gross capacity of 117 MW and a dependable
capacity of 112.5 MW, comprising five diesel engine generators of 23.4
MW each.

Uch Power Project

Another power generation unit from the private sector, Uch Power
Project has achieved of financial close in February - more than seven
month behind schedule. The project located near Dera Murad Jamali in
Nasirabad District of Balochistan province will produce 586 megawatt of
power in the first phase.

Ground-breaking of the project was performed by Prime Minister
Benazir Bhutto in April last year. Construction work on the site was
progressing according to the schedule. The project is based on combined
cycle on low BTU gas and gas turbine is scheduled to be on line in
January 1997 and Combined Cycle five month later in May 1997.

Letter of interest was issued in May 1994 and letter of support in
June 1994 by the Private Power and Infrastructure Board of the Federal
Government. Power Purchase Agreement has also been signed between PPIB,
Wapda and sponsors of the project sponsored by UCH Power Limited
Comprising Tanaska International USA Hawkins Gas and G.E. Capital also
from USA, Midland Electric of Britain and Hassan Group Pakistan.

The project will become fully operational by the end of December next
year. The gas will be supplied from nearby Uch gas fields of low BTU
quality which is other wise of no commercial use. The plant comprises
three gas turbine units with one combined cycle plant to be supplied by
General Electric, USA specially designed for low BTU gas.

The plant will be environment friendly and confirm to the World Bank
standards for environmental protection. The project will not only help
in meeting future increasing power demand in Balochistan province but
will also ensure reliable and stable power in the area depending upon
variation in load requirement in various areas at different times of the
year.

Power generated by the project would be fed into Wapda's power
system in other provinces as well. The project will give employment to
about 500 people during construction and 150 people during its
commercial operation. It is estimated to cost US$600 million including
loans to the extent of US$480 million provide by the World Bank
International Finance Corporation, and Bank of China.

Raiwind Power Plant

The World Bank has confirmed its financial assistance to the Southern
Electric Power Company Limited (SEPCOL) for commissioning its private
power plant costing $168 million set up at Raiwind near Lahore.

According to a letter to the Karachi Stock Exchange, Per Ljung, Chief
of Energy and Project Finance Operations Division for South Asia Region
at World Bank said: "The review of the Raiwind Project has to far
clearly demonstrated that the project is technically sound financially
viable and consistent with the Government of Pakistan's policy on
private power generation. In December 1995, the World Bank gave its
'No Objection' to the NDFC for opening of letter of credit
which were accordingly opened by the NDFC in early 1996 and the World
Bank envisages no difficulties in making disbursements against these
letters of credit in the near future".

The $168 million SEPCOL plant is one of the five power projects that
are going ahead in Pakistan with the help of funds from the World Bank
and a consortium of private financial institutions. SEPCOL received
overwhelming response from its public subscription made on May 21, 1996,
and became the third largest issue in terms of over-subscription during
the last six months. According to statistics, during January-June 1996,
18 issues were offered for public subscription, of which seven were
over-subscribed and Southern Electric Power was the third largest issue
after Shaffi Chemicals and Orix Investment Bank.

The company offered shares value of Rs.104.80 million and the issue
was over-subscribed 2.84 times. The company received 500-share
applications amounting to Rs.297.62 million and nearly Rs.1.23 million
for application of more than 500 shares. The project is sponsored by BC
Hydro International Transpower Corp., registered in Cayman Islands and
Southern Electric Limited (SEL) registered in the Republic of Marshall
Islands. SEPCOL has a capacity of 117 mw and a dependable capacity of
112.5 mw.

The project will comprise five diesel engine generators of 23.4mw
each. Diesel engines have been acquired from SEMT Pielstic of France.
These diesel engines are known for their reliability and efficiency for
longterm operations in similar applications around the world. A net
capacity of 112 mw has been contracted with WAPDA which will purchase
the entire capacity along with energy delivered by the project under a
22-year power purchase agreement at 6.1 cents per kwh for the first ten
years which has been announced by the Government of Pakistan.

Barrett Hodgson Pakistan (Pvt.) Ltd.

Pakistan and UK have decided on a joint venture in the pharmaceutical
sector to manufacture life saving drugs in Pakistan. The initial
investment of this project will be Rs.350 million with a 60:40 share
ratio of UK and Pakistan, disclosed chairman Barrett Hodgson Pakistan
(Pvt.) Ltd., Dr. M.S. Habib. The project has already begun in site area
of Karachi and Rs.50 million have so far been spent on it.

The Chairman of the project said that Barrett Hodgson has started its
operation with initial investment of Rs.450 million with 24th position
in multinational pharmaceutical firms working in Pakistan. He hoped that
it will show substantial growth and rise to 10th position with total
assets of Rs.1 billion by 1999. To a question, he said that Barrett
Hodgson will be introduced in stock market after its full operation in
the field of pharmaceuticals.

Dr. Habib said that the company will also establish a joint venture
with Malaysia in the field of pharmaceuticals. He said that proposed
share equity in this joint venture will be 51 per cent by UK, 30 per
cent by Malaysia and remaining 19 per cent by Pakistan.

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